ANNOUNCEMENT 31 Mar 2016In March 2016, the government of Japan announced new support for the overseas expansion of domestic firms.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 31 March 2016: Loan for Titanium Sponge Production and Sales Business of Japanese Company in Saudi Arabia: http://www.jbic.go.jp/en/information/press/press-2015/0331-48040
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 31 March 2016, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with Japanese Toho Titanium Co., Ltd. totalling USD 2.7 billion.
The loan provides funds for a joint venture company in Saudi Arabia, Advanced Metal Industries Cluster and Toho Titanium Metal Company Limited (ATTM), to commence production and sales of titanium sponge . ATTM is jointly invested in by Toho Titanium and the Saudi Arabian company Advanced Metal Industries Cluster Company Limited.
In this context the Bank stated: 'As Japan's policy-based financial institution, JBIC will continue to support Japanese companies in promoting the development and acquisition of key natural resources, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Affected trading partners are identified based on UN Comtrade's import data from 2014. According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines. Thus, no affected trading partners have been identified.